AMT inventory adjustments on change from LIFO to FIFO. (alternative minimum tax): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on May 1, 1994. The length of the article is 470 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: A C corporation taxpayer changing from the LIFO inventory accounting method to the FIFO method needs to adjust its alternative minimum tax (AMT) taxable income downward for the LIFO recapture amount not reflected in prior adjusted current earnings (ACE). For both income tax and AMT purposes, an Internal Revenue Code section 481(a) adjustment is needed to account for the change from LIFO to FIFO. ACE adjustments follow the rules of the FIFO method. This means the taxpayer changing from LIFO has not been benefiting from the use of LIFO to the extent that it has had AMT liability and an adjustment is warranted.

Citation Details
Title: AMT inventory adjustments on change from LIFO to FIFO. (alternative minimum tax)
Author: David M. Burlas
Publication:The Tax Adviser (Magazine/Journal)
Date: May 1, 1994
Publisher: American Institute of CPA's
Volume: 25 Issue: n5 Page: 293(1)

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